Global Cement News

India: Credit rating agency ICRA has said that the demand for cement in India is likely to grow by around 6% in the current financial year, which ends on 31 March 2019. In its latest report on the sector, it said this would be due to a pick-up in the affordable and rural housing segment and infrastructure, primarily in road and irrigation projects.

Philippines: Holcim Philippines, part of LafargeHolcim saw a 25% in its first half net profit to US$30.0m due to stiff competition and higher operating costs. In the second quarter its profit fell by about 25% year-on-year to US$16.3m. However, second quarter net sales improved by 18.5% year-on-year to US$189.5m.

"Our second quarter performance showed encouraging trends, which translated into significant sales growth on the back of strong building activity,” said Holcim Philippines’ President John Still. “However, rising costs of fuel, power and distribution combined with the Peso's depreciation against the US Dollar and tighter competition continued to impact our business performance in the second quarter.” Still was optimistic that the second half of 2018 would offer Holcim Philippines the opportunity to recover some of the lost ground, following the improvement between the first and second quarter and the underlying ‘robust building activity’ in the country.

Vietnam: Vietnamese cement exports in the first seven months of 2017 reached an estimated 17.8Mt, a year-on-year increase of 55% and close to the 18-19Mt target for the entire year. Exports of cement in July 2018 alone were estimated at 2.1Mt, an increase of 43% over July 2017.

During the seven month period, consumption of cement from Vietnamese producers in both domestic and export markets was estimated at 58.3Mt, equal to 69% of the year’s target 83-85Mt.

Pakistan: DG Khan Cement, part of Nishat Group, has announced the official opening of its recently commissioned Hub plant in Balochistan, Pakistan. The company claims that the 9000t/day (2.9Mt/yr) plant is ‘Asia's most modern’ and is constructed entirely from European equipment. FLSmidth was the main supplier of the pyroprocessing equipment, with Loesche supplying three complete grinding plants, Haver & Boecker supplying packaging solutions and IBAU Hamburg supplying silos and loading technology. The plant was built in just 30 months.

Global Cement visited the Hub project when it was under construction in the March 2018 issue.

Greece: Titan Cement’s turnover fell during the first half of 2018 due to a stagnant US market and negative currency effects. Its turnover fell by 7.9% year-on-year to Euro713m in the first half of 2018 from Euro774m in the same period in 2017. Its earnings before interest, taxation, depreciation and amortisation (EBITDA) fell by 14% to Euro122m from Euro142m. However, its net profit rose by 78% to Euro24.8m from Euro13.9m.

In the US the group reported that demand for cement continued to grow but that ‘exceptionally’ rainy weather in the eastern states held back sales and ‘production challenges’ in Florida had to be addressed through increased imports via its Tampa terminal. Turnover declined in Greece due to falling infrastructure projects and a poor house-building sector.

Markets in southeastern Europe reported mixed performance with overall turnover falling. In Egypt negative currency affects limited turnover although earnings rose in both local and Euro terms. In Turkey the net results of Adocim were close to the previous year’s levels. In Brazil a truck drivers’ strike in May 2018 dented a construction market that was showing ‘encouraging’ signs.